Refund theft, also known as refund fraud, refund scam or whitehouse scam, has increased dramatically over the past decade. The crime typically involves the returning of goods which are ineligible for refund to a retailer in exchange for money or other goods. Retailers estimate that over five percent of holiday returns are fraudulent. As such, cracking down on refund theft has become a high priority among retailers in general, and in particular, among those retailers that sell high end and designer clothing.
Refund theft takes many forms and includes everything from returning used goods to switching tags on sale merchandise to altering e-receipts from online purchases. By way of example, over the past few years, there has been a substantial increase in the wearing and subsequent return of expensive clothes. This practice, referred to as wardrobing by merchants, costs retailers billions of dollars every year and results in higher prices on all goods. In a recent survey of the National Retail Foundation, approximately 65 percent of retailers said shoppers had returned used products.
Retailers have taken various approaches to combatting wardrobing. For example, Bloomingdale's has begun attaching a specially made plastic tag to dresses costing more than $150. The tag is left on the dress after the sale. These special tags, called “b-tags,” are attached to visible places of the dress, such as the front bottom hemline, thereby making them difficult to hide when the dress item is worn. Once the plastic tag is removed, the garment cannot be returned. While functional for its intended purpose, it can be appreciated that affixing a b-tag to a garment adds to the overall cost of such garment to the retailer which, in turn, adds to the overall cost of the garment to the consumer. As such, while adding the cost of the b-tag may be of minimal consequence to more expensive items, affixing the b-tag to less expensive items may be cost prohibitive.
In view of the foregoing, it can be appreciated there exists an unresolved need for a device which prevents the fraudulent return of retail goods and/or refunds therefore and a method of using the same.
In accordance with the present invention, a method is provided of forming a tamper evident tag connectable to an article by a tag fastener. The method includes the step of inserting a first end of tag fastener through the article and first and second layers of the tamper evident tag. The first layer is larger than the second layer. The first layer of the tamper evident tag is folded onto itself so as to capture the second layer of the tamper evident tag and first end of the tag fastener therebetween.
Security information may be printed on a first side of the second layer of the tamper evident tag. The first layer includes first and second portions having adhesive thereon. The second layer also includes first and second portions. The first portion of the second layer is bound to the first portion of the first layer by the adhesive and the second portion of the second layer is removeably affixed to the second portion of the first layer. The second portion of the second layer may be removed from the second portion of the first layer to expose the adhesive on the second portion of the first layer. Thereafter, the first portion of the second layer is contacted with the adhesive on the second portion of the first layer to affix the second portion of the first layer to the second layer. The second portion of the second layer is provided with a non-binding layer of material affixed thereto, such as silicone or wax. The second layer may include a printable surface and the method may include the additional step of printing at least one of a barcode and an alphanumeric code on the second layer. The first layer may transparent.
In accordance with a further aspect of the present invention, a method is provided of preventing the fraudulent return of an article by a seller. The method includes the step of inserting a first end of a tag fastener through the article and through an aperture formed in a tag having an inner and an outer layer. A unique code is provided on the tag. A portion of the inner layer of the tag is removed to expose an adhesive. The exposed adhesive is brought into contact with the inner layer of the tag to capture the first end of the tag fastener between the outer layer and the inner layer. The unique code is associated with the article for future reference.
It is contemplated for information on the unique code be embedded in a receipt provided to a customer after purchase of the article. As such, the return of the article to the seller is prevented if the information on the unique code embedded in a receipt fails to match the unique code of the tamper evident tag. The unique code includes at least one of a barcode and an alphanumeric code. The outer layer may be transparent and the first portion of the backing layer may be coated with a releasable, non-binding agent, e.g., silicone. A second portion of the backing layer is free of the releasable, non-binding agent.
In accordance with a further aspect of the present invention, a tamper evident tag is connectable to an article by a tag fastener having first and second end. The tamper evident tag includes a first layer having an outer surface, an inner surface including first and second portions, and an aperture extending through the first layer and communicating with the first portion of the inner surface. An adhesive is disposed on the first and second portions of the inner surface of the first layer. A second layer has first and second portions, an inner surface, an outer surface and an aperture extending through the first portion of the second layer. The inner surface of the first portion of the second layer is bound to the inner surface of the first portion of the inner surface of the first layer by the adhesive and the second portion of the second layer is removeably affixed to the second portion of the inner surface of the first layer. The aperture through the first layer communications with the aperture through the second layer such that the first end of tag fastener is insertable through first and second layers of the tamper evident tag. The first layer is foldable onto itself such that the second portion of the inner surface of the first layer is configured to be bound to outer surface of the first portion the second layer so as to capture the first end of the tag fastener therebetween.
Security information may be printed on the outer surface of the second layer of the tamper evident tag. A non-binding layer of material may be affixed to the inner surface of the second portion of the second layer, wherein the material is one of silicone and wax. At least one of a barcode and an alphanumeric code is printed on at least one of the inner surface and the outer surface of the first portion of the second layer. The first layer may be transparent.